Managing geopolitical disruption: The uncertainty facing today’s pension funds
04 May 2022
Concerns around stagflation are growing, driven by persistent inflationary shocks and a potential slowdown in economic activity associated with rising interest rates. At the same time, investors remain concerned about the impacts of climate change – which also continue to evolve. The range of risks that are on pension fund radars are expanding.
This article offers Ortec Finance’s view of the impact of the elevated uncertainty on pension providers. We focus on four types of risk that pension funds face. Many of these risks are operational and will need to be addressed in the short term. Others are financial and must be properly assessed against a range of scenarios to ensure all the implications are well understood. With this understanding in mind, pension providers can further assess their course of action in the long term.
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01 June 2023
Why stocks could be in the red this year and what to do about it
It hasn’t been since 2000 and 2001 that U.S. stock markets lost money in two consecutive years, but it’s something that could potentially happen again this year. Ortec’s modelling is pointing to negative equity returns over the next 12 months as the most likely market scenario. Pension funds with tactical or dynamic allocations at their disposal may want to temper their risk and consider fixed income instead.
Ortec Finance discusses with Responsible Investor on why high-quality climate data is essential for investors to map progress toward emission reduction goals and enable a successful transition to net-zero.